Employment status of India

As per Employment-Unemployment Survey (by NSSO) of 2011-12 (latest available), total workforce employed stands at 47.36 crore; with 23.16 crore in agriculture and 24.2 crore in Industry and Services
According to the fifth Annual Employment-Unemployment Survey (EUS) conducted between April and December 2015, 83% of the workers in India were self-employed, casual or contract workers.
As per Economic Census, 2013-14 (latest available), total workforce employed in all establishments stands at 13.1 crore. Further, own-account enterprises (OAEs), which do not employ any regular workers, and enterprises with < 10 workers together accounted for almost 79% of India’s workforce
Beginning from 2017-18, the NSSO has launched periodic labour force surveys (PLFS) to produce annual estimates of formal employment in the economy. This would also help India to meet the IMF’s Special Data Dissemination Standards (SDDS) for releasing quarterly data on macroeconomic indicators
In April 2018, for the first time, India released report on monthly payroll for the formal sector to facilitate analysis of new and continuing employment, based on EPFO’s, ESIC’s and (NPS) PFRDA’s payroll data and subscriptions. The period between September, 2017 and February, 2018 was covered and reported 31.10 lakh new additions across all age groups (those in the 18-25 age group, considered a proxy for new jobs, amount to 18.5 lakh). The payroll data from these three organisations would now be released every month (see box)
Report of the NITI Aayog’s Task Force on Improving Employment Data was released in 2017 (discussed later)
Committee under Dr. T.C.A. Anant, former Chief Statistician of India, is also examining various approaches with a view to reducing redundancy and avoiding duplication of efforts in estimation of employment through the establishment approach. It will also look into whether the monthly payroll data released by EPFO, ESIC and PRFDA can replace the quarterly enterprises-based survey on job creation by the Labour Bureau.

Table of Contents

Features of Employment

A study on the employment types and the living style of people gives an information on the following areas −
NATIONAL INCOME
Employment structure
Management of human Resources, etc.
The study helps us analyse the different levels of employment and the levels of income generated by different sectors that contributes to the national income.
On the basis of employment study, we can address the persistent social issues such as POVERTY, Child Labour, exploitation, etc
When we calculate all the goods and services produced in a year, it is known as Gross Domestic Product (GDP).
When we add all the earning of exports and deduct the amount paid for import, the final number is known as Gross National Product (GNP).
If the export is greater than the import, then the GNP’s measurement is on positive side and if the export is lesser than the import, then it is on negative side.

Seasonal Unemployment

Employment in India is multifaceted. There are people who are permanently unemployed; and there are people who are temporarily employed or temporarily unemployed (known as seasonal unemployment/employment).
On the other hand, a task that requires only 5 workers to handle it, is being handled by 12 workers. This condition is known as Disguised Unemployment.
Among all the workers of the country −
70 percent of the workforce are men.
Three-fourth of the workforce is from rural areas.
Women workers account to one-fifth of the total workforce (in urban areas).
Population refers to a group of people living in a given area in a given time period.
As per the 2009-10 data, about 39 persons of every 100 persons, are employed.
In urban areas, the number of employed people is 36 per 100 persons, whereas, it is about 40 per 100 persons in rural areas.
People in the urban areas are more literate, and they have more Options to look out for a permanent job. This could mainly be the reason for this gap.
The number of female workers in rural areas (25/100 women) is more than in urban (15/100 women) areas.
The income of the male counterpart in the urban areas is high. Hence, the need for a female member of a family to go and earn does not arise,
The disparity between self-employed workers and salaried workers is also high.
In India, there are more number of men as salaried workers than women.

IMPROVING EMPLOYMENT DATA

Report of the NITI Aayog’s Task Force (released in 2017) made recommendations to create a 21st century statistical system in India for the generation of comprehensive employment, unemployment and wage estimates on a sustained basis. These include:

Conduct of household surveys on annual basis.
Introduction of time-use survey, that be conducted every three years (such surveys also help in measuring women’s participation in unpaid work).
Use of technology for faster and better data collection, processing and assimilation.
Introduction of annual enterprise survey using enterprises registered with the GSTN as the sample frame.
Separate annual survey of enterprises excluded from the GSTN Database (i.e. those in Health and Education sectors, and those with turnover < INR 20 Lakh in other sectors).
Adoption of inclusive and wider definition of ‘formal workers’.
Adoption

Changes in the Structure of Employment

Slow Growth of employment has been a remarkable feature of economic change in India during the post-liberalisation period. Economic growth over this period has been highly uneven across different sectors and regions. The rate of growth of agriculture and manufacturing sectors has been sluggish for most part of the postliberalisation period. Growth, even in periods during which it increased, was driven primarily by the service sector. It has been primarily located in urban, particularly metropolitan, areas. Trade and foreign Investment have played only a marginal role as drivers of economic expansion. Benefits of economic growth have accrued differently across classes, resulting in a sharp increase in economic inequalities.
Not only has the Average employment growth over this period has been low, the uneven pattern of growth has resulted in considerable changes in the structure of employment. There has been a considerable contraction in generation of employment in agriculture since the second half of 2000s. The Mahatma Gandhi National Rural Employment Guarantee Act Programme (MGNREGA) was introduced in the mid-2000s with a promise of providing a guarantee of 100 days of employment to each rural household. Although that promise has never been met, the programme resulted in some increase in availability of employment in rural areas particularly in the initial years of its implementation. On the other hand, an increase in schooling attendance rates among children, albeit slow, is also said to have resulted in withdrawal of a section of younger people from the labour force.

JOB CREATION

As outlined in the NITI Aayog’s Action Agenda, India suffers more from the problem of underemployment (i.e. low-productivity, low-wage jobs) than unemployment as for example:
In 2011-12, agriculture engaged nearly 50% of the workforce but contributed 15% to GDP
In 2010-11, within manufacturing, small firms employed 72% but output was only 12%
In 2006-07, in services sector, MSMEs employed 98% of workforce but produced 62% of services

Opportunities for creation of well-paying and high productivity jobs:
Expansion of the organized sector to create well-paid high productivity jobs o Shift towards labour-intensive goods and services e.g. apparel, footwear, Food Processing, tourism etc.
Expansion in export market by developing Coastal Employment Zones, using better technology, and improving on quality to remain competitive
Leverage on economies of scale offered by exports market potential
Filling in for ageing workforce of China and also rising labour wages there
Reformation of labour laws (outlined in the next section)
Significant employment generation also takes place as a direct result of public investment in Infrastructure-2/”>INFRASTRUCTURE and expenditure on government schemes. Such jobs, being more manual or non-cognitive, do add to the numbers but miss focus on de

Trend of Employments

The pattern of employment has changed over the last four decades.
The Percentage of workforce in Primary Sector has decreased from 74.3% (in 1972—73) to 48.9% (in 2011—12).
The percentage of workforce in Secondary Sector has increased from 10.9 (in 1972—73) to 24.3 (in 2011—12).
The percentage of workforce in Tertiary Sector has increased from 14.8% (in 1972—73) to 26.8% (in 2011—12).
Similarly, the percentage of self-employed workers has come down from 61.4% (in 1972—73) to 52% (in 2011—12).
The percentage of regular salaried employees has gone up from 15.4% (in 1972—73) to 18% (in 2011—12).
The percentage of casual labourers has gone up from 23.2% (in 1972—73) to 30% (in 2011—12).
The workers working in a public sector or other enterprises who hire other workers to get the work done are known as formal workers.
On the other hand, the workers working in a primary sector (farmers, agricultural labourers), owners of small enterprises, are self-employed and do not hire workers. They are known as informal workers.
Formal workers account to only about 6% of the workforce in India, while the other 94% of the workforce are informal workers.
In the formal sector, only 21% of the workers are women.
On the other hand, in the informal sector, about 31% of the workers are women.
Unemployment in India is of different types.

Employment in India is a complex and multifaceted issue. The country has a large and growing population, which means that there is a constant need for new jobs to be created. However, the Indian economy is not always able to keep up with this demand, and as a result, unemployment is a major problem.

The unemployment rate in India is currently around 6%, which is higher than the global average. However, it is important to note that this figure varies widely across different states and regions. For example, the unemployment rate in the state of Kerala is just 2%, while the rate in the state of Bihar is 12%.

There are a number of factors that contribute to India’s high unemployment rate. One factor is the country’s large youth population. India has the largest population of young people in the world, and this group is growing rapidly. As more and more young people enter the workforce, the demand for jobs will continue to increase.

Another factor that contributes to India’s high unemployment rate is the country’s low level of education. Many Indian workers do not have the skills or qualifications that are required for the jobs that are available. This is a major problem, as it means that many people are unable to find work that is commensurate with their skills and abilities.

The Indian government has taken a number of steps to address the problem of unemployment. One of the most important initiatives has been the launch of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), which is a Skill development program. The PMKVY aims to train 10 million people in various skills over a period of three years.

The government has also taken steps to improve the Ease of Doing Business in India. This is important, as it will make it easier for businesses to create jobs. The government has also introduced a number of schemes to support small businesses, which are a major source of employment in India.

Despite the government’s efforts, the problem of unemployment in India remains a major challenge. The country needs to create more jobs, and it also needs to improve the quality of education and training that is available to its workers. If India can address these challenges, it will be able to reduce its unemployment rate and create a more prosperous future for its people.

In addition to the subtopics you have provided, here are some other important aspects of employment in India:

Employment by sector: The majority of employed Indians work in the services sector, followed by the agriculture sector and the industry sector.
Employment by occupation: The most common occupations in India are in agriculture, manufacturing, and trade.
Employment by gender: The majority of employed Indians are men, although the number of employed women is increasing.
Employment by age: The majority of employed Indians are between the ages of 15 and 64.
Employment by education: The majority of employed Indians have a secondary school education or less.
Employment by location: The majority of employed Indians live in rural areas.
Employment by industry: The most common industries in India are agriculture, manufacturing, and services.
Employment by enterprise size: The majority of employed Indians work in small enterprises.
Employment by ownership type: The majority of employed Indians work in private enterprises.
Employment by social security coverage: The majority of employed Indians do not have social security coverage.
Employment by working hours: The average working hours in India are 48 hours per week.
Employment by wages and salaries: The average wage in India is around $2 per day.
Employment by benefits: The majority of employed Indians do not receive any benefits from their employers.
Employment by working conditions: The working conditions in India vary widely, but many workers are exposed to hazardous conditions.
Employment by occupational safety and health: The occupational safety and health standards in India are not always adequate.
Employment by discrimination: Discrimination in employment is a problem in India, particularly against women and minorities.
Employment by child labour: Child labour is a problem in India, although the government has taken steps to address it.
Employment by forced labour: Forced labour is a problem in India, although the government has taken steps to address it.
Employment by human trafficking: Human trafficking is a problem in India, although the government has taken steps to address it.
Employment by informal economy: The informal economy is a major part of the Indian economy, and it employs a large number of people.
Employment by decent work:

What is the unemployment rate in India?

The unemployment rate in India is 7.8% as of January 2023. This means that 7.8% of the working-age population in India is unemployed.

What are the main reasons for unemployment in India?

The main reasons for unemployment in India are:

Rapid Population Growth: India’s population is growing at a rate of 1.2% per year, which means that there are more people entering the workforce every year than there are jobs available.
Lack of education and skills: Many people in India do not have the education or skills necessary to get a good job.
Economic slowdown: The Indian economy has been growing at a slower pace in recent years, which has led to fewer job opportunities.
Corruption: Corruption in the Indian government and Bureaucracy makes it difficult for businesses to operate and create jobs.

What are the effects of unemployment in India?

Unemployment has a number of negative effects on India, including:

Poverty: Unemployment leads to poverty, as people who are unemployed are unable to earn a living.
Social unrest: Unemployment can lead to social unrest, as people who are unemployed become frustrated and angry.
Crime: Unemployment can also lead to crime, as people who are unemployed may turn to crime as a way to make a living.
Brain drain: Unemployment can also lead to brain drain, as educated and skilled people may leave India in search of better opportunities elsewhere.

What are the solutions to unemployment in India?

There are a number of solutions to unemployment in India, including:

Investing in education and skills training: The Indian government needs to invest in education and skills training so that people have the skills they need to get a good job.
Creating jobs: The Indian government needs to create jobs by investing in infrastructure, manufacturing, and other sectors of the economy.
Reducing corruption: The Indian government needs to reduce corruption so that businesses can operate more easily and create more jobs.
Promoting Entrepreneurship: The Indian government needs to promote entrepreneurship so that people can start their own businesses and create jobs.

What is the future of employment in India?

The future of employment in India is uncertain. The Indian economy is expected to grow at a slower pace in the coming years, which could lead to further job losses. However, the Indian government is taking steps to address the issue of unemployment, such as investing in education and skills training and creating jobs. It is hoped that these measures will help to reduce unemployment in India in the future.

Sure, here are some MCQs without mentioning the topic “Employment status of India”:

Which of the following is not a type of employment?
(A) Full-time
(B) Part-time
(C) Temporary
(D) Permanent
Which of the following is the most common type of employment in India?
(A) Agriculture
(B) Manufacturing
(C) Services
(D) Trade
The unemployment rate in India is currently at what level?
(A) 6%
(B) 7%
(C) 8%
(D) 9%
Which of the following is the main reason for unemployment in India?
(A) Lack of education
(B) Lack of skills
(C) Lack of jobs
(D) Lack of motivation
The government of India has implemented a number of programs to reduce unemployment. Which of the following is not one of these programs?
(A) The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
(B) The Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
(C) The Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDU-GKY)
(D) The Atal Innovation Mission (AIM)
The informal sector in India is estimated to account for what percentage of the total workforce?
(A) 50%
(B) 60%
(C) 70%
(D) 80%
Which of the following is not a characteristic of the informal sector?
(A) Low wages
(B) Lack of benefits
(C) Unregulated working conditions
(D) High productivity
The government of India has implemented a number of programs to formalize the informal sector. Which of the following is not one of these programs?
(A) The Unorganized Sector Workers’ Social Security Act, 2008
(B) The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
(C) The Employees’ State Insurance Act, 1948
(D) The Maternity Benefit Act, 1961
The average monthly income of an informal sector worker in India is what?
(A) Rs. 10,000
(B) Rs. 15,000
(C) Rs. 20,000
(D) Rs. 25,000
Which of the following is not a challenge faced by the informal sector?
(A) Lack of access to credit
(B) Lack of access to markets
(C) Lack of access to technology
(D) Lack of access to education

I hope these MCQs were helpful. Please let me know if you have any other questions.